Yep, fail.
Edit**
First part of the event did not in my experience go over well at all, at the start of the event the server just was not responding most of the time, I know I got kicked offline and the server would not let me log that character back in for some time. I would log him in and it would get to the loading screen and then boot me back to the character select screen, about 5 minutes later I was finally able to get back in. (some people I know of gave up on the event at this point and decided to do other things with their time/buffs)
I think part of the issue with the enjoyment of the event stemmed from the melee vs ranged issue and mob AI (I know I saw several people in chat talking about what a great event they made for riflemen), as a melee character it's not fun having to chase a mob around in the first place add in extremely heavy lag and it does get frustrating, but that's an entirely different issue.
Once we got past the cantina to the other side of the river the lag was considerably less, not sure whether that was from the devs working on it or because we were in a less populated part of Theed--my opinion it was both. The event was a lot more fun once I was able to actually make my character do things.
Great work devs, definitely turned the event around, it started out rough (I honestly thought the server was going down), but you got us through, thanks that was a lot of fun once it got going, I hope you learned a lot of good stuff from this event and I hope you guys do more in the future!
